In 1984, William Chamberlain published a book called "The Policeman's Beard is Half Constructed" (Warner Books, NY. 0-446-38051-2, paper $9.95). The introduction claims: "With the exception of this introduction, the writing in this book was all done by computer."
The authorship is attributed to RACTER, originally "written in compiled BASIC on a Z80 with 64k of RAM."
Racter strings together words according to "syntax directives", and the illusion of coherence is increased by repeated re-use of text variables. This gives the appearance that Racter can actually have a conversation with the user that makes some sense, unlike Eliza, which just spits back what you type at it. Of course, such a program has not been written to perfection yet, but Racter comes somewhat close.
Since some of the syntactical mistakes that Racter tends to make cannot be avoided, the decision was made to market the game in a humorous vein, which the marketing department at Mindscape dubbed "tongue-in-chip software" and "artificial insanity".